GREY:ESOFD - Post by User
Comment by
bridgetonowhereon Sep 19, 2013 1:26pm
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Post# 21752076
RE:$6 million deal breaker fee
RE:$6 million deal breaker fee@infocounts - It's standard practice to have a break fee. Until the deal is consummated by shareholders of AMW and FCU, a purchase offer from an unrelated company could always come in. If AMW or FCU rejected the deal on the table in favour of a third company offer, then under the terms of the agreement they would be obligated to pay $6M to their counterparty (AMW or FCU) for breaking the agreement. Very much like making a down payment on a house and then changing your mind - you lose the down payment for not closing the deal.